The Lagrange Multiplier is similar to which of these terms from linear programming?
A) Shadow Price
B) Allowable Increase
C) Allowable Decrease
D) Reduced Cost

Question

Quizplus · Accepted Answer

The Lagrange multiplier is similar to the shadow price in linear programming. Both concepts involve determining the effect of a small change in the objective function on the optimal solution. The shadow price represents the increase in the objective function value per unit increase in the right-hand side of a constraint, while the Lagrange multiplier represents the increase in the objective function value per unit increase in a constraint coefficient. Allowable increase, allowable decrease, and reduced cost are all different concepts in linear programming.

The Lagrange Multiplier Is Similar to Which of These Terms